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Research Now Shows AI Equal to Human Medical Experts

Studies continue to show that artificial intelligence is on a par with human experts when it comes to making medical diagnoses based on images.

The potential for artificial intelligence in healthcare has caused excitement, with advocates saying it will ease the strain on resources, free up time for doctor-patient interactions and even aid the development of tailored treatment. Last month the UK announced £250m of funding for a new NHS artificial intelligence laboratory.

However, experts have warned the latest findings are based on a small number of studies, since the field is littered with poor-quality research.

One burgeoning application is the use of AI in interpreting medical images – a field that relies on deep learning, a sophisticated form of machine learning in which a series of labelled images are fed into algorithms that pick out features within them and learn how to classify similar images. This approach has shown promise in diagnosis of diseases from cancers to eye conditions.

However questions remain about how such deep learning systems measure up to human skills. Now researchers say they have conducted the first comprehensive review of published studies on the issue, and found humans and machines are on a par.

Prof Alastair Denniston, at the University Hospitals Birmingham NHS foundation trust and a co-author of the study, said the results were encouraging but the study was a reality check for some of the hype about AI.

Dr Xiaoxuan Liu, the lead author of the study and from the same NHS trust, agreed. ‘There are a lot of headlines about AI outperforming humans, but our message is that it can at best be equivalent,’ she said.

Writing in the Lancet Digital Health, Denniston, Liu and colleagues reported how they focused on research papers published since 2012 – a pivotal year for deep learning.

An initial search turned up more than 20,000 relevant studies. However, only 14 studies – all based on human disease – reported good quality data, tested the deep learning system with images from a separate dataset to the one used to train it, and showed the same images to human experts.

The team pooled the most promising results from within each of the 14 studies to reveal that deep learning systems correctly detected a disease state 87% of the time – compared with 86% for healthcare professionals – and correctly gave the all-clear 93% of the time, compared with 91% for human experts.

However, the healthcare professionals in these scenarios were not given additional patient information they would have in the real world which could steer their diagnosis.

Prof David Spiegelhalter, the chair of the Winton centre for risk and evidence communication at the University of Cambridge, said the field was awash with poor research.

“This excellent review demonstrates that the massive hype over AI in medicine obscures the lamentable quality of almost all evaluation studies,” he said. “Deep learning can be a powerful and impressive technique, but clinicians and commissioners should be asking the crucial question: what does it actually add to clinical practice?”

However, Denniston remained optimistic about the potential of AI in healthcare, saying such deep learning systems could act as a diagnostic tool and help tackle the backlog of scans and images. What’s more, said Liu, they could prove useful in places which lack experts to interpret images.

Liu said it would be important to use deep learning systems in clinical trials to assess whether patient outcomes improved compared with current practices.

DWC Amends DMEPOS Section of Fee Schedule

Pursuant to Labor Code section 5307.1, subdivision (g)(2), the Administrative Director of the Division of Workers’ Compensation ordered that the Durable Medical Equipment, Prosthetics, Orthotics, Supplies portion of the Official Medical Fee Schedule contained in title 8, California Code of Regulations, section 9789.60, is adjusted to conform to changes to the Medicare payment system that were adopted by the Centers for Medicare & Medicaid Services (CMS) in the October 2019 Quarter 4 DMEPOS Fee Schedule update.

Effective for services rendered on or after October 1, 2019, the maximum reasonable fees for Durable Medical Equipment, Prosthetics, Orthotics, Supplies shall not exceed 120% of the applicable California fees set forth in the Medicare calendar year 2019 “Durable Medical Equipment, Prosthetics/Orthotics, and Supplies (DMEPOS) Fee Schedule” revised effective October 2019, contained in the electronic fileDME19-D [ZIP, 4MB]” which is adopted and incorporated by reference, excluding the “Former CBA Fee Schedule File”, “Former CBA National Mail-Order DTS Fee Schedule File”, and “Former CBA Zip Code File”.

The fee schedule data file (DMEPOS_OCT) sets forth two columns for California labelled: “CA (NR)” [California Non-Rural] and “CA (R)” [California Rural]. For the services on or after October 1, 2019, payment shall not exceed 120% of the fee set forth for the HCPCS code in the CA (NR) column, except the fee shall not exceed 120% of the fee set forth in the CA (R) column if the injured worker’s residence zip code appears on the DMERuralzip_Q42019 file. Where column CA (NR) sets forth a fee for a code, but CA (R) for the code is listed as “0.00” the fee shall not exceed 120% of the CA (NR) fee, regardless of whether the injured worker’s address zip code is rural or non-rural.

DME19-D [ZIP, 4MB] includes the following documents which are incorporated by reference:

— DMEBACK 2019
— DMEPOS_OCT
— DMEREAD 2019 rev 6-1-19
— DMERuralzip_Q42019

Excluding:
— Former CBA Fee Schedule File
— Former CBA National Mail-Order DTS Fee Schedule File
— Former CBA Zip Code File

The CMS Manual System, Pub 100-4 Medicare Claims Processing, Transmittal 4386, Change Request 11433, August 30, 2019 sets forth the fourth quarter changes and is relied upon in adopting this update Order.

CMS has not made second, third or fourth quarter updates to the 2019 Parenteral and Enteral Nutrition fee schedule (PEN) file. Therefore, the Administrative Director Order dated December 21, 2018 continues to be effective for Parenteral and Enteral Nutrition fees, and the DMEPEN_JAN file contained in the DME19-A remains effective for services rendered on or after October 1, 2019.

The Medicare October 2019 fourth quarter DMEPOS fee schedule revision is available on the Centers for Medicare & Medicaid Services’ DMEPOS Fee Schedule quarterly file webpage .

Cardiologist with 25 Year History of Crime – Charged Again

A Huntington Beach doctor with a history of legal and disciplinary problems is one of the 25 people accused of participating in a Medicare fraud scheme that netted about $150 million through fraudulent insurance claims, according to federal prosecutors.

74 year old Nagesh Shetty, was just indicted in connection with the scheme, which involved “medically unnecessary” cardiac treatments and testing through an Inglewood healthcare provider, Global Cardio Care.

Shetty was first licensed by the California Medical Board in 1979 and has operated practices in Costa Mesa, West Covina and the West Hills neighborhood of Los Angeles, according to documents and online records.

In 1994, Shetty was indicted in federal court on 28 counts of mail fraud on allegations of defrauding a Minnesota-based insurance company through nonexistent, medically unnecessary or excessive medical treatment.”That case was later transferred to a California district court and charges were eventually dropped, court records show.

In 1996, Shetty was sentenced to 21 months in federal prison and fined $40,000 for filing false income tax returns and failing to report more than $400,000 in income over a three-year period in the 1980s, court documents show. At the time of the crimes, Shetty was owner and attending physician of Harbor Newport Medical Clinic in Costa Mesa.

While in prison, Shetty was indicted in 1998 on federal charges alleging that he defrauded military and private health insurance programs.

In 2000, a jury convicted Shetty of 26 felony counts of mail fraud and he was sentenced to two years in prison and three years’ supervised release, court records show. He also was ordered to pay restitution, including more than $28,000 to the U.S. Treasury and more than $19,000 to Blue Cross Blue Shield, court records show.

The California Medical Board revoked Shetty’s license in 2000, according to board records. His license to practice medicine also was revoked in New York in 1999 and Washington state in 2001, records show.

In 2005, Shetty petitioned the California board to reinstate his medical certificate. At the time, Shetty was bagging groceries and stocking shelves at a store and said his inability to practice his profession had caused emotional and financial strain for his wife and four children.

He was granted a probationary license, according to a decision by an administrative law judge, with the conditions that he complete an ethics course and a clinical training program, undergo monitoring and be barred from practicing solo, supervising physician assistants and handling any billing matters.

In 2009, Shetty completed his probation and the board reinstated his license.

In a disciplinary order effective April 26 2019, the board issued Shetty a public reprimand stemming from a case in which he was accused of repeated negligence and failure to maintain adequate and accurate records involving a patient in 2016, according to California Department of Consumer Affairs records.

And now he faces charges for his 2019 arrest!

Adjuster with Multiple Revoked Licenses – Sent to Jail

Former licensed public adjuster John Schoon, 54, of Huntington Beach, was sentenced to 180 days in county jail and five years of felony probation after pleading guilty to three felony counts of embezzlement and one felony count of forgery. Schoon stole over $132,000 in claims proceeds for clients by forging signatures and guarantee stamps.

Schoon has already paid $12,000 in restitution and was ordered to pay an additional $52,311 as a condition of his probation. Additionally, Schoon is not to have any contact with his victims and is forbidden from engaging in insurance related activities.

“The Department’s investigation revealed this adjuster went to great lengths to defraud his clients,” said Insurance Commissioner Ricardo Lara.

An investigation by the California Department of Insurance (CDI) revealed that Schoon, acting as World Wide Public Adjusters, negotiated checks by forging the signature of at least one of his clients and also forged endorsement guarantee stamps on behalf of that client’s mortgage company.

On January 17, 2015, CDI revoked Schoon’s licensing rights and privileges; however, Schoon continued to act as a public adjuster under the license of his wife, Andrea Schoon, which she obtained one month later on February 20, 2015. Interviews with several insureds that were represented by World Wide Public Adjusters, Inc. revealed they entered into contracts with Mr. Schoon and not his wife, although the contracts listed her public adjuster license number.

On September 12, 2016, his wife’s public adjuster licensing rights were revoked. Mr. Schoon continued to act as a public adjuster and on at least one occasion, used the public adjuster license number that belonged to a former colleague.

He failed to provide clients with the claim proceeds they were owed on multiple occasions. Mr. Schoon lied to clients about the status of their payments and wrote fraudulent checks with no intention of providing them with their funds, while using those claims proceeds for personal expenses or to pay other clients. In some cases, it appears that the clients were not even aware of some of the payments issued with regards to their insurance claims. Mr. Schoon did not provide clients with their claim proceeds and/or outstanding balances until they filed claims against his or his wife’s bonds or threatened legal action. This case was prosecuted by the Orange County District Attorney’s office.

Unsigned Policy Limiting Endorsement was “Equitable”

The court of appeal ruled on a case between CIGA and the Travelers that upheld the endorsement on the Travelers policy limiting its coverage for special employees in a general special employment situation.

In the unpublished case of Travelers v WCAB, and CIGA, two employers agreed that the general employer, StaffChex, vwould obtain workers’ compensation insurance for employees it leased to the special employer Jessie Lord Bakery. Relying on this agreement, the special employer obtained workers’ compensation insurance from Travelers for its own employees with a “limiting endorsement” excluding coverage for special employees.

These agreements were in place for several years when a special employee, Jose Luis Mastache, was injured on the job while assigned to the special employer. The general employer’s insurer, Ullico Casualty Company, thereafter became insolvent and California Insurance Guarantee Association (CIGA) took over the administration of the claim.

Although there was a written endorsement attached to the Traveler’s policy excluding coverage for special employees, and the special employee’s carrier was informed the general employee had obtained the required workers’ compensation insurance, the Workers’ Compensation Appeals Board invalidated the Travelers limiting endorsement because the limiting endorsement had not been signed by the special employer. The written affirmation was required under WCAB Rules, section 2259(e) in effect at the time the Travelers policy was written.

Thus, Travelers, the insurer for the special employer was ordered to bear all liability for compensation to the injured worker when the general employer’s insurer became insolvent. This obligated Travelers to pay the entire claim since CIGA had shown there was “other” insurance in effect. Travelers appealed and the court of appeal reversed the WCAB in the unpublished case.

The question of whether Travelers is “other insurance,” relieving CIGA of liability, turns on whether the endorsement in the Travelers policy is valid.

The court of appeals made the observation that it was addressing a commercial relationship between two relatively sophisticated parties and a third sophisticated insurance company who embarked on a course of dealing that had been in place for a number of years before Mastache was injured.This entire structure was set aside by the appeals board, ostensibly over the absence of a signature by Jessie Lord on the endorsement to the contract with Travelers, even though this contractual structure had been functioning for three years when Mastache was injured.

The parties complied with the applicable regulatory requirements and it is undisputed that they complied with their contractual commitments to one another. They performed these contractual commitments for several years. The court of appeals concluded that the appeal board’s decision was thus unreasonable and inequitable.

“Nullifying a three-sided, sophisticated contractual structure, under which all three parties performed their obligations in good faith over the absence of a signature on an endorsement to a contract disregards reality and is inequitable.”

WCIRB Publishes 2020 Plans and Manual

On September 5, 2019, the California Insurance Commissioner approved changes to the California Workers’ Compensation Uniform Statistical Reporting Plan – 1995 (USRP), California Workers’ Compensation Experience Rating Plan – 1995 (ERP) and Miscellaneous Regulations for the Recording and Reporting of Data – 1995 (Miscellaneous Regulations). These changes are effective January 1, 2020.

The 2020 versions of these publications, along with the advisory California Basic Underwriting Manual, are now available in the Filings and Plans section of the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) website and at the links below.

California Workers’ Compensation Uniform Statistical Reporting Plan – 1995.
California Workers’ Compensation Experience Rating Plan – 1995.
Miscellaneous Regulations for the Recording and Reporting of Data – 1995.
California Basic Underwriting Manual.

The Classification Search tool on wcirb.com has also been updated to reflect new and revised classifications effective January 1, 2020. Users can search classifications by keyword or classification code and view current classification phraseologies, footnotes and related USRP rules. The Classification Search also provides the prior year’s phraseology for comparison, which is at the bottom of each classification’s Detail Record page in the Prior Phraseology and Footnote section.

Enter a search term or classification code using the tool to begin your search. Narrow your search by choosing an industry group or related classifications from the “Filter By” pulldown menu. Refer to the Insurance Commissioner’s rules regarding the Standard Classification System in Part 3, Standard Classification System, of the California Workers’ Compensation Uniform Statistical Reporting Plan – 1995 (USRP).

Feds Arrest 25 So. Cal. Health Care Professionals

A local health care fraud enforcement action has resulted in federal charges against of 25 Southern California defendants for their alleged involvement in healthcare fraud schemes that fraudulently sought over $150 million from the Medicare and Medicaid programs, as well as private insurers and union health benefit plans. Fourteen of those charged in federal court in Los Angeles and Santa Ana are doctors or medical professionals.

A total of 10 cases have been announced. Those charged are:

Dr. Ronald Weaver, 70, of Pacific Palisades; Sara Soulati, 49, of Santa Monica; Dr. John Weaver, 75, of Alhambra; Dr. Ronald Carlish, 78, of Pacific Palisades; Dr. Howard Elkin, 68, of Whittier; Dr. Wolfgang Scheele, 79, of Los Angeles; and Dr. Nagesh Shetty, 74 of Huntington Beach, who were charged for their alleged participation in an approximately $135 million scheme to defraud Medicare through medically unnecessary cardiac treatments and testing through Global Cardio Care of Inglewood.

Navid Vahedi, 40, of Los Angeles; Vahedi’s pharmacy, Fusion Rx Compounding Pharmacy; and Joseph S. Kieffer, 39, a marketer, of Los Angeles, who were charged in a fraud and kickback scheme. Vahedi and Kieffer, allegedly paid commissions to marketers and some patients to obtain medically unnecessary compounded drugs to allow Fusion Rx to bill health care providers for those compounded drugs, many of which were reimbursed at rates much higher than average medications.

Hilda Haroutunian, 59, of Sun Valley; Dr. Keyvan Amirikhorheh, 60, of Seal Beach; Lorraine Watson, 56, a physician’s assistant, of Valley Village; Noem Sarkisyan, 63, of North Hollywood; and Edmond Sarkisyan, 40, a medical assistant, of North Hollywood, who were charged for their alleged participation in an approximately $10 million scheme to defraud the Family Planning, Access, Care and Treatment (Family PACT) program administered by Medi-Cal, the California Medicaid program, through fraudulent claims for family planning services, testing and prescriptions for non-existent patients submitted through Los Angeles Community Clinic and associated diagnostic testing laboratories and pharmacies.

Amir Friedman, 54, an anesthesiologist, of Calabasas, who is charged for his alleged participation in a conspiracy to commit honest services mail and wire fraud and Travel Act violations involving approximately $800,000 in kickbacks for compounded pharmaceutical drugs involving New Age Pharmaceuticals, Inc., in Beverly Hills.

Susan H. Poon, 54, a chiropractor who resides in Dana Point, who was arrested after a federal grand jury charged her in an approximately $2 million scheme to defraud Anthem, Aetna, and other Blue Cross Blue Shield Association affiliates, including the Teamsters Western Region and Local 177 health care plans.

Antonio Olivera, 78, of Downey; Emelita Cephass, 57, of Downey; and Martin Canter, 70, of Rancho Palos Verdes, who were charged for their alleged participation in a hospice kickback scheme.

Mahyar David Yadidi, 37, a chiropractor who resides in Los Angeles, who was charged with conspiracy to commit health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan.

Darren Hines, 49, a chiropractor who lives in the Harbor City neighborhood of Los Angeles, who was charged with health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan.

Illegal Pharmaceuticals Openly Sold Across So. Cal.

The Los Angeles City Attorney has filed criminal charges against eight individuals for allegedly importing over 100,000 foreign pharmaceuticals and selling them on street corners, in parks, in front of grocery stores, travel agencies and beauty salons, primarily to Latino customers.

Gloria Garcia, 65; Teresa Cruz, 64, Martha Bueno, 62; Bryan Pineda, 28; Maria Vences-Tinoco, 50; Maria Rosa Portillo, 74; Martha Siguenza, 74; and Helen Portillo, 40, were each charged with selling prescription medications without a license. Each was allegedly selling the illegally imported drugs out of attractive candy-colored displays throughout Los Angeles. Each defendant faces up to one year in jail. Additionally, first time offenders can be fined $5,000 and second time offenders face a $10,000 maximum fine. None of the defendants are licensed or trained medical providers.

Investigations into the suspects for dispensing illegal and dangerous pharmaceuticals led to the seizure of over 100,000 pills, compounds, and injectable medications that could have caused serious harm or death to consumers. The drugs seized included injectable drugs – typically used to treat back pain or bone infections – which cannot be purchased over the counter, require a prescription, and should only be injected by a licensed medical provider.

Also seized were antibiotics – the unsupervised use of which can increase resistance and lower effectiveness – pain medication, injectable contraception, lidocaine, and other potentially dangerous compounds. These foreign-made pharmaceuticals have not been approved for consumption by the general public in the United States.

L.A. County formed the Health Authority Law Enforcement Task Force (HALT) in 1999, after two Latino infants died from taking illegal medications. HALT is the group that made the August arrests. So far this year, it has arrested 34 people in 54 cases, 48 of them involving illegal pharmaceuticals sold to immigrants, said Erick Aguilar, one of the investigators.

Illegal pharmaceuticals are being sold to immigrants in “every rural swap meet you can find,” and the sellers are becoming more sophisticated, Aguilar said. “They’re better at hiding it,” and “they’re more careful who they sell to.”

Many were sheer counterfeits. Others, though legal south of the border, were not approved for sale in the United States. Some had expired. Still others would have been legal if sold by people licensed to do so – but none of the sellers held pharmacist licenses or any other medical credential.

Counterfeit medicines may contain the wrong ingredients, contain too little, too much or no active ingredient at all – or contain other, potentially life-threatening hidden ingredients,” said Jeremy Kahn, an FDA spokesman.

Between October 2017 and July 2018, FDA officials confiscated nearly 22,000 packages containing illegal pharmaceuticals from international mail facilities, Kahn said. He said authorities routinely impound various opioids as well as dietary supplements laced with erectile dysfunction drugs and other dubious products. They come from India, China and across Europe – “just about everywhere,” Kahn said.

Governor Signs AB 5 – Gig Workers Become Employees

Gov. Newsom signed AB 5 – what he called a landmark bill for workers.

AB 5 will codify a state Supreme Court Dynamax ruling last year that simplified the test for when a worker should be classified as an employee and therefore be entitled to a minimum wage, health benefits and other protections. The contentious legislation is expected to affect ride-hailing giants Uber and Lyft, plus a host of other companies that use independent contractors.

“The hollowing out of our middle class has been 40 years in the making, and the need to create lasting economic security for our workforce demands action,” said Newsom, who had previously voiced support for the bill, in his signing letter. “Assembly Bill 5 is an important step.”

A defiant Uber said last week that it is “no stranger to legal battles” and believes it can pass the test imposed by the courts and AB 5: that a worker is an independent contractor when he or she is free from control by a company; when the worker’s duties are outside the usual course of the company’s business; and when the worker is “customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.”

Uber said it does not plan to classify its drivers as employees when the bill becomes law in January. The San Francisco ride-hailing company, which has offered concessions short of classifying drivers as employees and has been negotiating with labor leaders and the governor, said through a spokesman Wednesday that “California is missing a real opportunity to lead the nation by improving the quality, security and dignity of independent work.”

But the bill’s author, Assemblywoman Lorena Gonzalez, D-San Diego, said in an interview, “If Uber thinks they’re so strong and powerful that they’re just going to ignore the law, that’s the reason we put the local enforcement clause in the bill.” AB 5 includes a provision empowering cities with populations over 750,000 to prosecute companies that continue to misclassify their workers.

Uber, Lyft and food delivery startup DoorDash have put $90 million into a fund for a campaign that would bring the issue to voters.

Representatives for Lyft and DoorDash said Wednesday they were encouraged Newsom indicated he would keep talking with business and labor in an effort to “preserve flexibility and innovation.”

But both companies also mentioned the possibility of putting the issue on the ballot. In addition, Lyft has warned that it wouldn’t need as many drivers and pointed to a recent study that says hundreds of thousands of drivers in the state could lose their ability to drive for the company if it is forced to classify them as employees.

The Orange County Register points out that one professor thinks ride-hailing drivers might see a smaller paycheck.

“This is yet to be seen but it is a possible argument because the incentives and reward system will be restructured to account for employee status,” said Orly Lobel, director of the Program on Employment and Labor Law at the University of San Diego.

Other workers, such as doctors, hairdressers and real estate agents, have secured exemptions from the bill. Newspaper publishers who use contract delivery workers got a one-year delay for compliance. But those in the trucking and music industries, among others, have also complained about the bill.

Jury Convicts Prison Worker for Comp Fraud

A former vocational nurse working at the California Institution for Men in Chino has been sentenced in a workers’ compensation fraud case in which he falsely claimed an inmate attacked him with a needle, and later collected tens of thousands of dollars in workers’ compensation benefits.

On June 7, 2019, a jury trial was held at the Riverside County Superior Court in Banning, California. Ndiawar Diop, DOB: 7-15-77, was convicted of six felonies – one count each of making a false workers’ compensation claim and attempted perjury as well as four counts of making a false statement in order to receive an insurance benefit.

On Sept. 13, 2019, Diop was sentenced by a Riverside County judge to six years, six months in county jail, five years of which are on mandatory supervision.

The judge also ordered Diop to pay restitution in the amount of $97,164.

In June 2013, Diop, who worked as a vocational nurse for the California Department of Corrections and Rehabilitation, reported that he accidentally poked himself with a needle while at work.

However, over time, Diop’s description of what happened changed.

Diop later said he thought it was an intentional act by the inmate to stick him with the needle and, on a later date, changed his story to say it happened when the inmate tried to stab in him the neck with the needle, resulting in the injury to his hand as he tried to shield himself from the attack.

However, that statement was proven false by the evidence presented at the trial.

The case, RIF1705383, was prosecuted by Deputy District Attorney Blaine Hopp of the DA’s Insurance Fraud Team and was investigated by the California Department of Corrections and Rehabilitation.